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<PAGE> PAGE 5
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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<PAGE> PAGE 13
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<PAGE> PAGE 14
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<PAGE> PAGE 15
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<PAGE> PAGE 16
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<PAGE> PAGE 17
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<PAGE> PAGE 18
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<PAGE> PAGE 20
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055 B000500 N
056 000500 N
057 000500 N
062 A000500 Y
062 B000500 0.0
062 C000500 0.0
062 D000500 0.0
062 E000500 0.0
062 F000500 0.0
062 G000500 0.0
062 H000500 0.0
062 I000500 0.0
062 J000500 0.0
062 K000500 0.0
062 L000500 0.8
062 M000500 0.0
062 N000500 0.0
062 O000500 99.2
062 P000500 0.0
062 Q000500 0.0
062 R000500 0.0
063 A000500 0
063 B000500 8.1
064 A000500 Y
064 B000500 N
070 A010500 Y
070 A020500 N
070 B010500 N
070 B020500 N
070 C010500 N
070 C020500 N
070 D010500 N
070 D020500 N
070 E010500 N
070 E020500 N
070 F010500 N
070 F020500 N
070 G010500 N
070 G020500 N
070 H010500 N
070 H020500 N
070 I010500 N
070 I020500 N
070 J010500 Y
070 J020500 N
070 K010500 Y
070 K020500 N
070 L010500 N
070 L020500 N
070 M010500 N
<PAGE> PAGE 22
070 M020500 N
070 N010500 Y
070 N020500 N
070 O010500 N
070 O020500 N
070 P010500 Y
070 P020500 Y
070 Q010500 N
070 Q020500 N
070 R010500 N
070 R020500 N
071 A000500 5454
071 B000500 1102
071 C000500 5732
071 D000500 19
072 A000500 12
072 B000500 346
072 C000500 0
072 D000500 0
072 E000500 0
072 F000500 38
072 G000500 0
072 H000500 0
072 I000500 2
072 J000500 0
072 K000500 1
072 L000500 1
072 M000500 0
072 N000500 8
072 O000500 0
072 P000500 0
072 Q000500 0
072 R000500 1
072 S000500 0
072 T000500 3
072 U000500 0
072 V000500 0
072 W000500 8
072 X000500 62
072 Y000500 56
072 Z000500 340
072AA000500 10
072BB000500 13
072CC010500 0
072CC020500 97
072DD010500 335
072DD020500 0
072EE000500 0
073 A010500 0.5819
073 A020500 0.0000
073 B000500 0.0000
<PAGE> PAGE 23
073 C000500 0.0000
074 A000500 331
074 A000500 0
074 A000500 0
074 B000500 8102
074 B000500 0
074 B000500 0
074 C000500 0
074 C000500 0
074 C000500 0
074 D000500 0
074 D000500 1
074 D000500 122
074 E000500 0
074 E000500 8556
074 E000500 0
074 F000500 0
074 F000500 0
074 F000500 0
074 G000500 0
074 G000500 0
074 G000500 0
074 H000500 0
074 H000500 0
074 H000500 0
074 I000500 0
074 I000500 0
074 I000500 0
074 J000500 0
074 J000500 0
074 J000500 0
074 K000500 1
074 K000500 0
074 K000500 0
074 L000500 122
074 L000500 0
074 L000500 0
074 M000500 0
074 M000500 0
074 M000500 0
074 N000500 8556
074 N000500 0
074 N000500 0
074 O000500 377
074 P000500 0
074 Q000500 0
074 R010500 0
074 R020500 0
074 R030500 0
074 R040500 13
074 S000500 0
<PAGE> PAGE 24
074 T000500 8166
074 U010500 800
074 U020500 0
074 V010500 10.21
074 V020500 0.00
074 W000500 0.0000
074 X000500 183
074 Y000500 1206
075 A000500 0
075 B000500 5986
076 000500 0.00
SIGNATURE DIOMEDES LOO-TAM
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN MUNICIPAL SECURITIES TRUST MAY 31, 1996 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 01
<NAME> FRANKLIN HAWAII MUNICIPAL BOND FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1996
<PERIOD-END> MAY-31-1996
<INVESTMENTS-AT-COST> 37,324,560
<INVESTMENTS-AT-VALUE> 37,741,269
<RECEIVABLES> 1,067,947
<ASSETS-OTHER> 73,352
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 38,882,568
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 77,819
<TOTAL-LIABILITIES> 77,819
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 39,107,431
<SHARES-COMMON-STOCK> 3,682,205
<SHARES-COMMON-PRIOR> 3,452,783
<ACCUMULATED-NII-CURRENT> 124,725
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (844,116)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 416,709
<NET-ASSETS> 38,804,749
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,289,084
<OTHER-INCOME> 0
<EXPENSES-NET> (132,344)
<NET-INVESTMENT-INCOME> 2,156,740
<REALIZED-GAINS-CURRENT> (122,116)
<APPREC-INCREASE-CURRENT> (371,355)
<NET-CHANGE-FROM-OPS> 1,663,269
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2,147,284)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 593,700
<NUMBER-OF-SHARES-REDEEMED> (454,099)
<SHARES-REINVESTED> 89,821
<NET-CHANGE-IN-ASSETS> 1,977,381
<ACCUMULATED-NII-PRIOR> 115,269
<ACCUMULATED-GAINS-PRIOR> (722,000)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 240,276
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 320,445
<AVERAGE-NET-ASSETS> 38,322,450
<PER-SHARE-NAV-BEGIN> 10.670
<PER-SHARE-NII> .600
<PER-SHARE-GAIN-APPREC> (.128)
<PER-SHARE-DIVIDEND> (.602)
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 10.540
<EXPENSE-RATIO> .350
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN MUNICIPAL SECURITIES TRUST MAY 31,1996 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 021
<NAME> FRANKLIN CALIFORNIA HIGH YIELD MUNICIPAL FUND-CLASS I
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAY-31-1996
<PERIOD-END> MAY-31-1996
<INVESTMENTS-AT-COST> 118,631,608
<INVESTMENTS-AT-VALUE> 118,673,431
<RECEIVABLES> 4,266,953
<ASSETS-OTHER> 327,673
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 123,268,057
<PAYABLE-FOR-SECURITIES> 4,498,311
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 244,363
<TOTAL-LIABILITIES> 4,742,674
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 120,509,777
<SHARES-COMMON-STOCK> 12,059,037
<SHARES-COMMON-PRIOR> 5,145,872
<ACCUMULATED-NII-CURRENT> 18,541
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (2,044,758)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 41,823
<NET-ASSETS> 118,525,383
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 5,186,021
<OTHER-INCOME> 0
<EXPENSES-NET> (263,277)
<NET-INVESTMENT-INCOME> 4,922,744
<REALIZED-GAINS-CURRENT> (275,621)
<APPREC-INCREASE-CURRENT> (1,356,026)
<NET-CHANGE-FROM-OPS> 3,291,097
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (5,000,226)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 8,327,567
<NUMBER-OF-SHARES-REDEEMED> (1,602,938)
<SHARES-REINVESTED> 188,536
<NET-CHANGE-IN-ASSETS> 67,423,841
<ACCUMULATED-NII-PRIOR> 96,559
<ACCUMULATED-GAINS-PRIOR> (1,769,137)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 473,616
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 611,711
<AVERAGE-NET-ASSETS> 75,866,425
<PER-SHARE-NAV-BEGIN> 9.930
<PER-SHARE-NII> .640
<PER-SHARE-GAIN-APPREC> (.102)
<PER-SHARE-DIVIDEND> (.658)
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 9.810
<EXPENSE-RATIO> .350
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN MUNICIPAL SECURITIES TRUST MAY 31,1996 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 022
<NAME> FRANKLIN CALIFORNIA HIGH YIELD MUNICIPAL FUND-CLASS II
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAY-31-1996
<PERIOD-END> MAY-31-1996
<INVESTMENTS-AT-COST> 118,631,608
<INVESTMENTS-AT-VALUE> 118,673,431
<RECEIVABLES> 4,266,953
<ASSETS-OTHER> 327,673
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 123,268,057
<PAYABLE-FOR-SECURITIES> 4,498,311
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 244,363
<TOTAL-LIABILITIES> 4,742,674
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 120,509,777
<SHARES-COMMON-STOCK> 21,617
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 18,541
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (2,044,758)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 41,823
<NET-ASSETS> 118,525,383
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 5,186,021
<OTHER-INCOME> 0
<EXPENSES-NET> (263,277)
<NET-INVESTMENT-INCOME> 4,922,744
<REALIZED-GAINS-CURRENT> (275,621)
<APPREC-INCREASE-CURRENT> (1,356,026)
<NET-CHANGE-FROM-OPS> 3,291,097
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (536)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 21,567
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 50
<NET-CHANGE-IN-ASSETS> 67,423,841
<ACCUMULATED-NII-PRIOR> 96,559
<ACCUMULATED-GAINS-PRIOR> (1,769,137)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 473,616
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 611,711
<AVERAGE-NET-ASSETS> 75,866,425
<PER-SHARE-NAV-BEGIN> 9.820
<PER-SHARE-NII> .050
<PER-SHARE-GAIN-APPREC> .004
<PER-SHARE-DIVIDEND> (.054)
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 9.820
<EXPENSE-RATIO> .910
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN MUNICIPAL SECURITIES TRUST MAY 31, 1996 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 03
<NAME> FRANKLIN WASHINGTON MUNICIPAL BOND FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1996
<PERIOD-END> MAY-31-1996
<INVESTMENTS-AT-COST> 7,914,611
<INVESTMENTS-AT-VALUE> 7,913,889
<RECEIVABLES> 150,914
<ASSETS-OTHER> 92,526
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 8,157,329
<PAYABLE-FOR-SECURITIES> 427,644
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 11,723
<TOTAL-LIABILITIES> 439,367
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 7,806,247
<SHARES-COMMON-STOCK> 787,397
<SHARES-COMMON-PRIOR> 579,874
<ACCUMULATED-NII-CURRENT> 36,979
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (124,542)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (722)
<NET-ASSETS> 7,717,962
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 366,775
<OTHER-INCOME> 0
<EXPENSES-NET> (6,070)
<NET-INVESTMENT-INCOME> 360,705
<REALIZED-GAINS-CURRENT> (39,744)
<APPREC-INCREASE-CURRENT> (33,367)
<NET-CHANGE-FROM-OPS> 287,594
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (360,198)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 230,239
<NUMBER-OF-SHARES-REDEEMED> (49,709)
<SHARES-REINVESTED> 26,993
<NET-CHANGE-IN-ASSETS> 1,977,165
<ACCUMULATED-NII-PRIOR> 36,472
<ACCUMULATED-GAINS-PRIOR> (84,798)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 38,934
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 56,869
<AVERAGE-NET-ASSETS> 6,211,603
<PER-SHARE-NAV-BEGIN> 9.900
<PER-SHARE-NII> 0.560
<PER-SHARE-GAIN-APPREC> (0.082)
<PER-SHARE-DIVIDEND> (0.578)
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 9.800
<EXPENSE-RATIO> 0.100
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN MUNICIPAL SECURITIES TRUST NOVEMBER 30, 1995 SEMI ANNUAL REPORT
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
</LEGEND>
<SERIES>
<NUMBER> 04
<NAME> FRANKLIN TENNESSEE MUNICIPAL BOND FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-1996
<PERIOD-END> NOV-30-1995
<INVESTMENTS-AT-COST> 8,758,735
<INVESTMENTS-AT-VALUE> 9,198,164
<RECEIVABLES> 133,005
<ASSETS-OTHER> 191,445
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 9,522,614
<PAYABLE-FOR-SECURITIES> 393,990
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 19,098
<TOTAL-LIABILITIES> 413,088
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8,624,355
<SHARES-COMMON-STOCK> 847,504
<SHARES-COMMON-PRIOR> 568,467
<ACCUMULATED-NII-CURRENT> 50,138
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (4,396)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 439,429
<NET-ASSETS> 9,109,526
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 229,223
<OTHER-INCOME> 0
<EXPENSES-NET> (9,968)
<NET-INVESTMENT-INCOME> 219,255
<REALIZED-GAINS-CURRENT> 347
<APPREC-INCREASE-CURRENT> 184,865
<NET-CHANGE-FROM-OPS> 404,467
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (211,237)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 284,231
<NUMBER-OF-SHARES-REDEEMED> (19,025)
<SHARES-REINVESTED> 13,831
<NET-CHANGE-IN-ASSETS> 3,123,548
<ACCUMULATED-NII-PRIOR> 42,120
<ACCUMULATED-GAINS-PRIOR> (4,743)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 9,968
<AVERAGE-NET-ASSETS> 7,528,502
<PER-SHARE-NAV-BEGIN> 10.530
<PER-SHARE-NII> .281
<PER-SHARE-GAIN-APPREC> .235
<PER-SHARE-DIVIDEND> (.296)
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 10.750
<EXPENSE-RATIO> .260
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN MUNICIPAL SECURITIES TRUST MAY 31, 1996 ANNUAL REPORT AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 05
<NAME> FRANKLIN ARKANSAS MUNICIPAL BOND FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1996
<PERIOD-END> MAY-31-1996
<INVESTMENTS-AT-COST> 8,061,338
<INVESTMENTS-AT-VALUE> 8,102,474
<RECEIVABLES> 122,369
<ASSETS-OTHER> 331,001
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 8,555,844
<PAYABLE-FOR-SECURITIES> 377,105
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 13,192
<TOTAL-LIABILITIES> 390,297
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8,126,683
<SHARES-COMMON-STOCK> 799,979
<SHARES-COMMON-PRIOR> 400,569
<ACCUMULATED-NII-CURRENT> 36,889
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (39,161)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 41,136
<NET-ASSETS> 8,165,547
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 346,464
<OTHER-INCOME> 0
<EXPENSES-NET> (5,988)
<NET-INVESTMENT-INCOME> 340,476
<REALIZED-GAINS-CURRENT> (2,503)
<APPREC-INCREASE-CURRENT> (96,898)
<NET-CHANGE-FROM-OPS> 241,075
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (335,368)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 405,209
<NUMBER-OF-SHARES-REDEEMED> (30,209)
<SHARES-REINVESTED> 24,410
<NET-CHANGE-IN-ASSETS> 4,031,806
<ACCUMULATED-NII-PRIOR> 31,781
<ACCUMULATED-GAINS-PRIOR> (36,658)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 37,533
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 62,156
<AVERAGE-NET-ASSETS> 5,985,615
<PER-SHARE-NAV-BEGIN> 10.320
<PER-SHARE-NII> 0.550
<PER-SHARE-GAIN-APPREC> (0.078)
<PER-SHARE-DIVIDEND> (0.582)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 10.210
<EXPENSE-RATIO> 0.100
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
REPORT OF INDEPENDENT AUDITORS
To the Shareholders and Board of Trustees
of the Franklin Municipal Securities Trust:
In planning and performing our audit of the financial
statements and financial highlights of the funds comprising
the Franklin Municipal Securities Trust for the year ended
May 31, 1996, we considered its internal control structure,
including procedures for safeguarding securities, in order
to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and
financial highlights and to comply with the requirements of
Form N-SAR, not to provide assurance on the internal control
structure.
The management of the Franklin Municipal Securities Trust is
responsible for establishing and maintaining an internal
control structure. In fulfilling this responsibility,
estimates and judgments by management are required to assess
the expected benefits and related costs of internal control
structure policies and procedures. Two of the objectives of
an internal control structure are to provide management with
reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or
disposition and that transactions are executed in accordance
with management's authorization and recorded properly to
permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control
structure, errors or irregularities may occur and not be
detected. Also, projection of any evaluation of the
structure to future periods is subject to the risk that it
may become inadequate because of changes in conditions or
that the effectiveness of the design and operation may
deteriorate.
Our consideration of the internal control structure would
not necessarily disclose all matters in the internal control
structure that might be material weaknesses under standards
established by the American Institute of Certified Public
Accountants. A material weakness is a condition in which the
design or operation of the specific internal control
structure elements does not reduce to a relatively low level
the risk that errors or irregularities in amounts that would
be material in relation to the financial statements and
financial highlights being audited may occur and not be
detected within a timely period by employees in the normal
course of performing their assigned functions. However, we
noted no matters involving the internal control structure,
including procedures for safeguarding securities, that we
consider to be material weaknesses, as defined above, as of
May 31, 1996.
This report is intended solely for the information and use
of management of the Franklin Municipal Securities Trust and
the Securities and Exchange Commission.
S\COOPERS & LYBRAND L.L.P.
Coopers & Lybrand L.L.P.
San Francisco, California
July 3, 1996
NAME OF REGISTRANT:
Franklin Municipal Securities Trust
File No. 811-6481
EXHIBIT ITEM No. 77C:
Submission of matters to a vote of security holders.
ACTION OF SOLE SHAREHOLDER BY WRITTEN CONSENT
The undersigned, being the sole shareholder of the Class II
shares of Franklin California High Yield Municipal Fund (the
"Fund"), a series of Franklin Municipal Securities Trust (the
"Trust"), does hereby take the following actions and does hereby
consent to the following resolution:
RESOLVED:That the Class II Distribution Plan
pursuant to Rule 12b-1 (under the Investment
Company Act of 1940), as agreed to and accepted by
Franklin/Templeton Distributors, Inc. and the
Trust prior to the date below, be and it hereby
is, approved for the Fund.
By execution hereof, the undersigned shareholder
waives prior notice of the foregoing action by written consent.
FRANKLIN RESOURCES, INC.
_______________________
Dated as of: April 30, 1996 By: Harmon E. Burns
Executive Vice President
